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I just put my LS1 back together and was looking to do the same thing. I few guys on the forum told me it would not work, because the knock sensors would go off all the time due to the loud noise made by the gear drives. This is just what I was told.
I can confirm what has been said--at least with straight-cut gears. The same applies to solid-lifter cams, even rollers.
However, I would think that Jessel (sp?) would make a belt system for the LS-series and one might wish to consider it. They are widely used in hipo engines and if the engines we build and race were not gear-driven from the factory, we'd definitely go the Jessel route.
Designer Imagines A Corvette That Looks More Like a Corvette Than the Corvette
Slideshow: A Jaguar designer's personal project imagines what a modern front-engined Corvette might look like if Chevrolet revisited the golden age of the Stingray.